Caesars [formerly Harrah's] sought a Casino License at Suffolk Downs, was rebuffed for other than financial reasons and filed suit against the Gam[bl]ing Commission.
Caesars Is In Deep Trouble Heading Into Earnings
Summary
- Caesars is expected to announced Q2 earnings on Monday.
- The company's flat to declining revenue and operating income do not justify its 16x EBITDA multiple.
- With $21 billion in long-term debt which Moody's cites as unsustainable, Caesars is in deep trouble heading into earnings.
Caesars Entertainment Corporation (NASDAQ:CZR) is expected to announce Q2 earnings on Monday. The company owns, operates and manages over 50 casinos in over 13 states and five countries. Its 39 casinos in the U.S. are primarily land-based, riverboat and dockside casinos. Analysts are expecting revenue of $2.22 billion and loss per share of $1.19. The company was sold in 2008 in a leveraged buyout for $6 billion in cash and $22 billion in debt. The global economy has not rebounded since the financial crisis, yet the company remains saddled with $21 billion in debt and nearly $600 million in quarterly interest expense. The revenue estimate implies 3% growth Y/Y and 6% Q/Q.
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